FIRST PRESBYTERIAN CHURCH OF HONOLULU | AUGUST 2016
THE HUNT FOR BLACK DECEMBER
Dealing with the Church Budget Deficit
As we launch our Acts 1:8 Appeal, the issue of our
step out believing that if we answer God’s call for our
church deficit has been raised by a number of people
ministries, AND exercise good stewardship, He will
in the congregation, so we interviewed Executive
resource His church. It’s amazing how many times His
Coordinator Ron Mathieu to get some perspective.
providence and timing have coincided with our fiscal
FPC: What is the difference between FPC’s “debt” and “deficit”? Ron: Our $1.1M debt is the balance remaining from
year accounting! But we also track trends very carefully, and our projections have been fairly accurate.
what we borrowed to purchase and renovate our
FPC: So if it always seems to work out, why does the
Ko’olau property.
church always make a plea for more at the end of
Our 2016 deficit is the difference between what we
the year?
have spent for church operations (ministry expenses,
Ron: Because the deficit is a very real situation, and
salaries, and overhead) and what we have collected
our congregation’s giving is the solution. If people
for those expenses. As of this writing it is $307K.
aren’t aware of the need, they understandably may
FPC: This seems to happen every year. Why is that? Ron: The problem is a well-established donation pattern wherein our congregation historically gives 22% in each of the first three quarters, and 34% in the fourth quarter, with most of that received in December (often the last week!). Expenses, on the other hand, tend to even out across the year. This timing “mis-match” produces a predictable deficit, and we only end up in the black when, and if, there is a strong push at the end of the year. FPC: That must make it pretty difficult to plan.
donate their limited charitable dollars to other organizations that are asking when we aren’t. It’s also a reminder to those who have not finished their tithe. FPC: It wouldn’t be good if people were willing to give but weren’t informed. When do we first learn we have a deficit? Ron: Pretty early on, and we share that information every week in the Sunday news bulletin, and during announcements. This is a predictable historical trend that continues to grow until October, when we see a bump in donations resulting from Give Aloha, Foodland’s gift-matching program. Then spending generally continues to outpace income
Ron: Yes and no. We formulate the budget almost 18
until the last week or two of December, when we
months in advance with no certainty of how much will
typically see an incredible response to our appeal for
be collected. We call this a “faith budget” because we
year-end giving.
FIRST PRESBYTERIAN CHURCH OF HONOLULU | AUGUST 2016
FPC: We seem to be farther into the red this year.
Financially, elimination of our debt will free up nearly
Ron: We are, and we’re watching it very carefully and spending prudently. Income has been lower than
$140K per year for the next ten years that can go toward ministry instead of debt service.
average. In fact, donations in June were the lowest
Strategically, increasing our parking capacity and
in years.
planning for future growth makes room for more to
This is despite the fact that the 2016 budget is 3.7% lower than 2015 and spending is $70K (7%) less
join in our mission of spreading God’s love locally and beyond.
than last year. Even though we have emphasized
Our congregation has always responded when the
stewardship more from the pulpit, tithes and offerings
need is clearly articulated. God has always responded
are down $114K (13%) as of June 30th compared
when we’ve answered His call and are good stewards.
to 2015.
God’s faithfulness and your faithfulness have proven
FPC: Does it make sense to launch a capital appeal if
sufficient in the past, and we believe will be in the
giving is down?
future as well.
Ron: This is a spiritual question as well as a financial one.
See the Acts 1:8 Appeal Frequently Asked Questions
Spiritually, do we really believe God will provide if we follow His call and are good stewards? If the answer is yes, then our “faith” budget has a firm foundation. And history has proven God is a debtor to no one.
on our website at fpchawaii.org for further information on this topic. Feel free to call Ron Mathieu or Executive Director Chris Pan at 532-1111, if you have unanswered questions.
It’s also a counterintuitive fact that when our congregation considers sacrificial stewardship above and beyond tithes and offerings, all giving increases. We believe this is because of renewed discussion about our mission as a body of believers, increased commitment to our individual roles in that spiritual movement, and a thankful response to the blessings we’ve received from God.
“Our congregation has always responded when the need is clearly articulated. God has always responded when we’ve answered His call and are good stewards.”